One of the concerns is sandstorms, and the resulting dust that would accumulate in the air and on the panels, thus hampering output. For example, in August 2009, when the amount of suspended dust in the air was between 1,500 and 2,000 parts per million (more than 10 times higher than normal), the Masdar solar plant was functioning at 40% below its capacity. Within a week, the panels were cleaned and back to normal output, but the concern remains, as frequent sandstorms would require more cleanings, which would in turn increase the operating and maintenance costs.

Don't mind the dust

According to Khaled Awad, the director of Masdar City, “Dust storms have the same impact on a PV panel’s performance as cloud cover. In Abu Dhabi, we have a number of dust storms during the year, but compared with the level of cloud cover that European countries such as Germany receive, the performance in Abu Dhabi is far superior. In fact, on average, a solar module installed in Abu Dhabi will generate twice as much as [one installed in] a cloudy region in Europe.”

Act 3: Houston, we have a problem

January 2010: Masdar announced that the project would not be finished until 2020 at the earliest.

March 2010: As a result of the weak property market in Abu Dhabi, Masdar revisits its city plan. Masdar concedes that much of the electricity for the city will need to be imported, instead of being produced on site. Project leaders also announced that the electric transport pods are not likely to be used throughout the entire city.

June 21, 2010: Tariq Ali, head of research at MIST, resigned after a year in the post.

July 1, 2010: Responding to some of the negative press, Masdar CEO Sultan al-Jaber comments that Masdar will not be scaled back. There are significant delays across the project, and a revised master plan for the city is thought to be imminent. Thus far, the city contains only the MasdarInstitute of Science and Technology, where tuition is free. (Editor's note: The Masdar Institute is functioning. A second class of grad students from around the world will arrive in the fall. However, most of the classes and research work still take place in nearby buildings because construction is ongoing.)

On June 9, 2010, representatives of the Masdar project announce plans to construct a large scale concentrating solar plant, with construction to start as soon as 3Q 2010, and project completion slated for 3Q 2012. The project, “Shams 1,” is a 100 MW concentrating solar power (CSP) plant in Madinat Zayed, 75 miles southwest of Abu Dhabi. It will use parabolic trough technology supplied by Abengoa Solar. Ownership of the project will be 60% Masdar, 20% Abengoa, and 20% Total. Capacity of the plant is planned to be increased to 2,000 MW in the future. Project cost is estimated at $600M, which equates to $6 per watt. The government of Abu Dhabi will provide a long-term Green Power Agreement, and the electricity produced will be sold to Abu Dhabi Water and Electricity Company (ADWEC) under a long-term contract.

The 100 MW concentrating solar project is moving forward, with construction to begin this quarter.

Act 5: Abu Dhabi is loaded, and can afford to foot the bill. But if they build it, will the tenants come?

But the Masdar City concept only makes sense if businesses will locate there, providing jobs and attracting employees. The building boom in Abu Dhabi over the last decade has added substantial amounts of commercial real estate, so finding tenants willing to relocate to Masdar might prove more difficult than originally envisioned. According to research by Tasweek Real Estate, average apartment prices in Abu Dhabi have fallen 40% to 50% from their peak. Essentially, the supply/demand balance for real estate in Abu Dhabi has shifted significantly in favor of property buyers.

In the film Field of Dreams, Kevin Costner's character is encouraged to “Build it, and they will come.” Abu Dhabi had a similar vision, but now appears to be having second thoughts.